An Invitation to Invest in Tourism Development in
Padang City,
West Sumatra Province,
Republic of Indonesia
INDONESIA TOURISM INVESTMENT INVITATION
INDONESIA TOURISM INVESTMENT INVITATION
Welcome to the Republic of Indonesia
The Land of Smiles . . .
Presenting:
Padang City,
West Sumatra Province
Our missions are:
1. Promoting the best of Indonesia’s tourism development projects;
2. Informing both international and domestic; investors, developers, operators, and
visitors about investment opportunities on Indonesia tourism development ;
3. Providing guidance for the investors about the comprehensive investment services
that are being offered by the Ministry’s partners, including the Indonesia
Investment Coordinating Board.
Page1 | 17
An Invitation to Invest in Tourism Development in
Padang City,
West Sumatra Province,
Republic of Indonesia
INDONESIA TOURISM INVESTMENT INVITATION
LOCATION
Page2 | 17
Republic of Indonesia Location
West Sumatra Province Location
Padang City Location
INDONESIA TOURISM INVESTMENT INVITATION
GEOGRAPHY
Capital City : Kototangah
Time Zone : WIB (UTC+7)
Coordinate : N 01°57'2.76" E 100°21'41.64"
Area Width : ± 694,93 km2
Borders : North : Padang Pariaman Regency
West : Mentawai Strait
South : Pesisir Selatan Regency
East : Solok Regency
Air Temperature : 23,1-31,8 °C
Relative Humidity : 71-97 %
DEMOGRAPHICS
Population : 914,968 (2016)
Density : 1,327/km²
Labour Force : 40,140
Ethnic Group : Minang , Javanese
Religion : Islam, Hindu, Buddhist, Christian and Catholic
Language : Indonesian (official) and Minang (local language)
BUSINESS ENVIRONMENT
In 2016, Padang City’s economy was improving, indicated by the increase of GDRP of
around 6% from the preceding year. The economic structure in Padang City was
dominated by wholesale and retail trade; also repair of motor vehicles and motorcycles
sector. This sector contributed around 16.71% to the total GDRP, followed by
transportation and storage sector by 16.11%, manufacturing sector by 14.86%,
followed by construction by 10.06% and accommodation and food service activities by
1.38%.
Page3 | 17
INDONESIA TOURISM INVESTMENT INVITATION
INFRASTRUCTURE
Transportation
Padang City’s transportation system consists mainly of road and rail transport. Land
transportation infrastructure supported by the network of national, provincial and
regency levels. Rail transportation infrastructure supported by Sibinuang train that
serves the Padang-Pariaman corridor. This train is under the control of Regional
Division II of West Sumatra. This train carries out Padang-Pariaman trip four times a
day. Overall, the existing transportation infrastructure has reached almost all parts of
Padang City.
Telecommunication
Telecommunication infrastructure has been well implemented and have covered the
entire city with and are easily accessible.
Energy
Provision of electricity is served by the State Electricity Enterprise or Perusahaan
Listrik Negara (PLN) of West Sumatra Province, Padang Branch. The power production
capacity is 55,300 MWH.
Water
Clean water was obtained from surface water sources and underground water sources.
The surface water was garnered from 6 river that flows in this area and supplying
Regional Water Company (PDAM) of Padang City.
Page4 | 17
INDONESIA TOURISM INVESTMENT INVITATION
TOURISM FACTS
ATTRACTION
Padang is the capital and largest city of West Sumatra. This city in one of the top tourist
destination and became point of transit and transport hub for travellers visiting tourist
attractions around West Sumatra. Rendang which is listed number one dish in “The
World’s 50 Most Delicious Foods” by CNN International in 2011 originated from this
place. As a top tourist destination in West Sumatra, Padang also have several famous
tourist attractions, which are:
1. Padang Old Town
Padang Old Town, or Padang Lama, is the old part of Padang lined with colonial
Dutch buildings that are standing along Batang Arau River. The harbor along the
river was once a very important port until the 19th century. Across the river is
Padang Hill, the first settlement before Padang developed into a town. The buildings
now are used as warehouses for spices. Chinatown can be found on the west side of
Padang Old Town, also adorned with old buildings including an old Buddhist temple
with Chinese architecture, over 200 years old.
2. Air Manis Beach
Air Manis Beach or Sweet Water Beach with brown-white sand is located 10kms
south of Padang. When the tide is low, Pulau Pisang Ketek (Small Banana Island)
which is 200 meters across the shore can be easily reached by foot. There are many
rock formations, one of them is the legend Malin Kundang Stone formations, are
found here. The legend of Malin Kundang states that he was cursed for the denial of
his own mother. Air Manis Beach is a perfect place to learn surfing. Air Manis Beach
is within a secluded bay surrounded by forested hills. It only takes 30 minutes to get
to from Padang.
3. Padang Hill and Siti Nurbaya Park
Across the Arau River is Siti Nurbaya Park which can be reached by bridge or boat.
Remains of Japanese canons and bunkers from World War II are a familiar sight in
the area. The place offers a great views over Padang city, Arau River and the Indian
oceans.
Page5 | 17
INDONESIA TOURISM INVESTMENT INVITATION
4. Adityawarman Museum
The Adityawarman is situated in the center of Padang. This museum was built
in 1976 and inaugurated on 16 March 1977 by then the Cultural and Education
Minister, Prof. Dr. Syarief Thayeb. Adityawarman Museum occupies an area of 2.5
hectares, and it is surrounded by a spacious and neatly laid out garden. This
museum collects 6,000 Minangkabau relics, which are classified into
Geological/Geographical, Biological, Ethnographical, Archaeological, Historical,
Numismatic/Heraldic, Philological, Ceramology (all kind of objects that made from
ceramic), 3-dimension Art, and technological. All collections are housed in a large
traditional Minangkabau house that lies in front of two rice barns (also known as
Rangkiang in West Sumatera dialect).
ACCESSIBILITIES
Padang City is relatively easy to reach by both domestic and international tourist. The
main entry is through Minangkabau International Airport located north-west of Padang
City, in Ketaping, Padang Pariaman Regency. Minangkabau International Airport is one
of the 4 international airports in Sumatra with flights directly from Singapore, Penang
and Kuala Lumpur. From the Minangkabau International Airport, tourist can reach
Padang City via land transport. The total distance between the Minangkabau
International Airport and Padang City is around 23 Km, which takes around 30 minutes
by car.
Page6 | 17
INDONESIA TOURISM INVESTMENT INVITATION
REGIONAL TOURISM POLICY
TOURISM POSITION ON REGIONAL DEVELOPMENT
Tourism has become one of the main priority sector for development by the local
government. The government and the community have fully aware of the Padang City
tourism resources and its potential for economic contribution through tourism
development. They are welcoming investors that are willing to cooperate not only on
developing more tourism attraction and facilities but also to develop in all of tourism
aspects of Padang City.
REGIONAL TOURISM DEVELOPMENT OBJECTIVE
The tourism development at the West Sumatra must be implemented in compliance
with the following principles:
1. Community based tourism
Maintain the involvement of the local community and the stakeholders on every
tourism development activities
2. Sustainable tourism
Continuous improvement and preservation of the environmental, cultural and
community aspects of tourism development
3. Cultural preservation
Implement and integrate the local culture elements on all of the tourism
development activities
4. Collaborative cooperation between stakeholders
Cooperate and accommodate all of the stakeholder’s aspirations
Page7 | 17
INDONESIA TOURISM INVESTMENT INVITATION
1. Located at Air Manis Sub-District, South Padang District, Padang City, West
Sumatra, Indonesia
2. Location Coordinate : S 0°59'23.71" E 100°21'38.19"
3. Location Width : ± 5 ha
4. Land Owner: Government
5. Tourism Business Opportunities (including the investment code of the Standard
Classification of Indonesian Business Fields for Tourism):
a. 1 unit of Three Star Hotel (5511) with 80 rooms.
Estimated required initial funds: IDR 44 Billion (Excluding land lease, license
and permit fees)
b. 1 unit of Restaurant (56101)
Estimated required initial funds: IDR 5 Billion (Excluding land lease, license
and permit fees)
c. 2 units of Café (56303)
Estimated required initial funds: IDR 2.5 Billion (Excluding land lease, license
and permit fees
6. Available cooperation
Investors are encouraged to invest in partnership with the local government
through the following cooperation:
a. Build, Operate and Transfer (BOT)
b. Joint Venturec. Other agreeable cooperation forms
Page9 | 17
INDONESIA TOURISM INVESTMENT INVITATION
1. Located at Batang Arau Street, Batang Arau Sub-District, West Padang District,
Padang City, West Sumatra, Indonesia
2. Location Coordinate : S 0°57'47.50" E 100°21'46.08"
3. Location Width : ±
● GF 21,8 x 21,25 m2
● F1 21,8 x 21,25 m2
4. Land Owner: Local communities
5. Tourism Business Opportunities (including the investment code of the Standard
Classification of Indonesian Business Fields for Tourism):
a. 1 unit of Boutique Hotel (5511)
Estimated required initial funds: IDR 30 Billion (Excluding land lease, license
and permit fees)
6. Available cooperation
Investors are encouraged to invest in partnership with the local government
through the following cooperation:
a. Sub-leaseb. Joint Venturec. Other agreeable cooperation forms
Page11 | 17
INDONESIA TOURISM INVESTMENT INVITATION
1. Located at Batang Arau Street, Tanah Kongsi Sub-District, West Padang District,
Padang City, West Sumatra, Indonesia
2. Location Coordinate : S 0°57'51.58" E 100°21'34.15"
3. Location Width :±
● GF 24x35 m2
● F1 24x35 m2
4. Land Owner: Panca Niaga Company
5. Tourism Business Opportunities (including the investment code of the Standard
Classification of Indonesian Business Fields for Tourism):
a. 1 unit of Restaurant (56101)
Estimated required initial funds: IDR 20 Billion (Excluding land lease, license
and permit fees)
6. Available cooperation
Investors are encouraged to invest in partnership with the local government
through the following cooperation:
a. Sub-leaseb. Joint Venturec. Other agreeable cooperation forms
Page13 | 17
INDONESIA TOURISM INVESTMENT INVITATION
1. Located at Batang Arau Street, Nipah Sub-District, West Padang District, Padang
City, West Sumatra, Indonesia
2. Location Coordinate : S 0°57'52.26" E100°21'30.12"
3. Location Width :± 22,75 x 19,5 m2
4. Land Owner: Bank Indonesia
5. Tourism Business Opportunities (including the investment code of the Standard
Classification of Indonesian Business Fields for Tourism):
a. 1 unit of Art Gallery (90001)
Estimated required initial funds: IDR 25 Billion (Excluding land lease, license
and permit fees)
6. Available cooperation
Investors are encouraged to invest in partnership with the local government
through the following cooperation:
a. Sub-leaseb. Joint Venturec. Other agreeable cooperation forms
INVESTMENT OPPORTUNITIES SUMMARY
Business
Fields
Amount
Needed
Required Funds Per
Business Field
Total Required Fund
Per Business Field
Category
Air Manis BeachThree Star Hotel 1 IDR 44 Billion IDR 44 Billion
Restaurant 1 IDR 5 Billion IDR 5 Billion
Cafe 2 IDR 2.5 Billion IDR 5 Billion
Total Required Fund (Excluding Land Lease, License and Permit)
IDR 54 Billion
Padang Old TownBoutique Hotel 1 IDR 30 Billion IDR 30 Billion
Restaurant 1 IDR 20 Billion IDR 20 Billion
Art Gallery 1 IDR 25 Billion IDR 25 Billion
Total Required Fund (Excluding Land Lease, License and Permit)
IDR 75 Billion
Total Required Fund in the Region (Excluding Land Lease, License and Permit)
IDR 129 Billion
Page15 | 17
INDONESIA TOURISM INVESTMENT INVITATION
Welcome to Padang CityTourism Investment Zones . . .
Deputy for the Development of Destinations and Tourism Industry
Ministry of Tourism, Republic of Indonesia
Sapta Pesona Building, 4th Floor, Medan Merdeka Barat Street No. 17
Central Jakarta, 10110
Contact us:
Phone: +62(0) 21 383 8040
E-Mail: [email protected]
Website: www.indonesia-tourism-investment.com
www.indonesia.travel
Page16 | 17